1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
SpyIntel [72]
2 years ago
7

Susan is having a bakery in the heart of the city and supplies special type of cheese cookies to all the retail outlets based on

the demand. Her cost of making each box of cookies is 15 SAR and she sells it at 18 SAR. The historical data shows that her demand is normally distributed with a mean of 250 boxes per day with a standard deviation of 22 boxes. All those boxes that are not picked up on the same day by the retailers are sold in her own shop at 10 SAR on the next day. What is the optimal stocking level?
Business
1 answer:
ahrayia [7]2 years ago
5 0

Answer:

The optimal stocking level is 243 boxes

Explanation:

In order to calculate the optimal stocking level we would have to calculate the following formula:

optimal stocking level=mean+(Z* standard deviation)

According to the given data we have the following:

mean=250 boxes per day

standard deviation=22 boxes

To calculate the z value we would have to calculate the service level as follows:

service level=shortage/(shortage+overage)

service level=3/(3+5)

service level=0.38

Hence, z value is -0.31

Therefore, optimal stocking level=250 + (-0.31 * 22)

optimal stocking level=243 boxes

The optimal stocking level is 243 boxes

You might be interested in
Fred and george have been in partnership for many years. the partners, who share profits and losses on a 60:40 basis, respective
Doss [256]
I'm not gonna tell u the answer but u have to set 60:40 as a ratio to set it as a ratio u put 60/40 and then simplify to simplify those two number u have to divide by ten and find the relationship of those two number after y simplify and get ur number u scale up or down so after All those u have a fraction and then do the steps all over to $10,000
6 0
3 years ago
How long would it take for Nico to save an adequate amount for retirement if he deposits​ $40,000 per year into an account begin
dalvyx [7]

Answer: It will take Nico approximately 12 years

Explanation:

Payments = $40000

r = 12%

Future Value = 1000 000

Future Value annuity = Payments((1 + r)^n - 1)/r

1000000 = 40000((1 + 0.12)^n - 1)/0.12

40000((1.12)^n - 1) = 1000000 x 0.12

(1.12)^n -1 = 120000/40000

(1.12)^n = 3 + 1

nlog(1.12) = log(4)

n = log(1.12)/log(4) = 12.232510748

n ≈ 12 years

It will take Nico approximately 12 years

6 0
2 years ago
Read 2 more answers
In the past, Taylor Industries has used a fixed−time period inventory system that involved taking a complete inventory count of
N76 [4]

Answer:

a) Taylor Industries can successfully cut back its labor cost in inventory stockrooms by counting only high-value items.  These items are determined by reference to their Annual Usage values.  The items' annual usage values should be used as the activity cost pool for accumulating and allocating labor cost in inventory stockrooms.  Taylor Industries can establish a benchmark or cutoff point so that only the items meeting this benchmark are counted.  For example, the items with annual usage value above $5,000 should be included in the items to be counted.  This strategy will reduce the number of items to be counted and therefore the labor cost.

b) Since item 15 is critical to Taylor Industries' continued operations, it should be classified as a direct materials cost and not an overhead cost.

Explanation:

a) Data and Calculations:

a random sample of 20 of Taylor's items:

ITEM NUMBER   ANNUAL USAGE    ITEM NUMBER    ANNUAL USAGE

1                               $ 1,500                      11                       $ 13,000

2                               12,000                     12                              600

3                                2,200                      13                        42,000

4                              50,000                     14                           9,900

5                                9,600                     15                            1,200

6                                   750                      16                         10,200

7                                2,000                      17                          4,000

8                               11,000                      18                         61,000

9                                  800                       19                         3,500

10                            15,000                      20                        2,900

Average annual usage value = $12,657.50

4 0
3 years ago
Jessep Corporation has a standard cost system in which manufacturingoverhead is applied to units of product on the basis of dire
Orlov [11]

Answer:

Standard fixed overhead rate

= Budgeted fixed overhead cost

  Budgeted direct labour hours

= $45,000

  15,000 hours

= $3 per direct labour hour

Fixed overhead volume variance

= (Standard hours - Budgeted hours) x Standard fixed overhead rate

= (12,000 hours - 15,000  hours)  x $3

= $9,000(U)

The correct answer is B

Explanation:

In this case, we need to calculate standard fixed overhead rate, which is budgeted fixed overhead cost  divided by budgeted direct labour hours. Then, we will calculate fixed overhead volume variance, which is the difference between standard hours and budgeted hours multiplied by standard fixed overhead rate.

8 0
3 years ago
Peter, the owner of Happy Burger, is involved in the company's daily decisions and has established procedures for every task. Th
ohaa [14]

Answer:

mechanistic

Explanation:

Mechanistic organization is the organization that is hierarchical and bureaucratic

It is characterized by its;

  1.  Highly centralized authority.
  2. Formalized procedures and practices.
  3. Specialized functions.

Mechanistic organizations work well in stable, simple environments. Managers integrate the activities of clearly defined departments through formal channels and in formal meetings. Often, they feature many hierarchical layers and a focus on reporting relationships.

6 0
3 years ago
Other questions:
  • Carly interviews for the job—and she gets it! Her new boss says that what impressed him most was her global mindset, and he want
    6·1 answer
  • Create a memo. The memo should include all parts of a memo and these parts should appear in the correct order. In your memo, giv
    12·2 answers
  • Which type of financial statement should you look at if you want to see a company's profits and losses over a specific period of
    8·2 answers
  • What shows the quantities of products demanded at each price by all consumers in a market?
    5·2 answers
  • Social enterprises are businesses that directly address which of the following?
    14·1 answer
  • In an economy, the government wants to decrease aggregate demand by $24 billion at each price level to decrease real GDP and con
    10·1 answer
  • Rita has just received a major order from Northrop Corporation for her firm's hydraulic lift equipment. After reviewing the orde
    9·1 answer
  • Individuals who fail to complete high school are at an increased risk for
    9·1 answer
  • Instances where' silence is golden ' is applicable
    5·1 answer
  • Austin Company uses a job order cost accounting system. At the beginning of the year, the company's executives estimated that di
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!